GBP/USD closes in on 1.3500 in European morning trade
The quid is hitting fresh lows on the day now with cable easing back towards 1.3500 and testing the 23.6 retracement level of the recent swing higher @ 1.3509.
A Brexit agreement remains elusive and it doesn't look like there will be anything concrete before the weekend arrives, so that in part could explain some weakness in the pound amid position squaring as warned earlier.
Honestly, the fact that both sides have ignored "deadlines" time and time again just ensures that even with the weekend approaching, there might not be bad news to come from it. However, one can understand the risks and jitters associated.
As much as some EU lawmakers are pushing for a Sunday midnight deadline, there is still scope for both sides to keep talking well into next week (maybe even next year) even if there is a chance that we could get a brief no-deal period after 31 December.
As for cable, further near-term support is seen closer to the 100-hour moving average at 1.3465 with some minor support closer to 1.3450; that is should 1.3500 give way.
Elsewhere, EUR/GBP is now pushing higher to 0.9070 and is testing its 200-hour moving average at 0.9071 so that is also a key near-term level to watch for the pound.
Break above that and the near-term bias is more bullish but keep below and the bias stays more neutral with the 100-hour moving average seen at 0.9052.
